"Thailand Plans VAT Increase to Raise 600 Billion Baht"

"Thailand Plans VAT Increase to Raise 600 Billion Baht"

Thailand’s caretaker finance minister, Pichai Chunhavajira, says the country needs to raise an additional 600 billion baht in tax revenue, noting that current levels fall short compared to similar economies. The standard VAT rate is legally 10%, but it’s currently set at 7% and due to expire in September—prompting discussions on increasing it. Any decision will weigh economic conditions and international pressures, including U.S. tariffs that currently favor Thai exports. Additional revenue would be used to reduce public debt, support small businesses, and help shrink the budget deficit to below 3% of GDP, possibly without cutting spending by instead securitizing state assets and boosting investment.